Code of engagement

Past the flirting stage, and starting to go steady with sustainability? Then the purchasing department may need counselling on long-term commitment. John Brady of IEMA looks forward to the reading of the banns.

The purchasing department is in the front line. It's a key fact to grasp that, when getting to grips with sustainable development, an organisation needs to address the environmental and social impacts in its supply chain - because, 'in sickness and in health', the inflow of material and energy all comes through the purchasing process.

The problems arise at the point where long-term commitment is required. They may be familiar with their prospective partners, but commitment and action aren't yet in place for the vast majority of organisations in the UK.

This point was made in the second report of the Advisory Committee of Consumer Products and the Environment, in relation to government inaction. But it also applies to the broad spread of public and private sector organisations, who seem unable to engage with the big idea.

Help is at hand. IEMA, in its recently-published second Practitioner journal, makes a timely contribution, reminding environmental and purchasing professionals that the groundwork has in fact been done. The foundations are in place for lasting and mutually beneficial relationships, committing organisations to action on sustainable development in the supply chain. All that is required from the chief executive are those two small words - "I do."

Entitled Environmental Purchasing, A Guide for Organisations, and published with the Chartered Institute of Purchasing and Supply and the NHS Purchasing and Supply Agency, this second Practitioner describes tools and techniques that are now available to help purchasing departments with their engagement.

It might surprise many to learn that such a range of tools and techniques have indeed been developed. The guide takes the somewhat unusual approach of separating purchasing into its component stages, to explore the types of environmental assessment most suitable for each stage. Life cycle thinking, for example, might help define the need for a product or service. Various labelling schemes could say something useful about the specification. Environmental questionnaires can be very helpful in driving improvements along the supply chain; they are now being used extensively by leading companies.

Part of IEMA's contribution in the Practitioner is a Draft Code of Practice on incorporating environmental considerations into supply chain management. Its adoption as part of an environmental management scheme (EMS) could help spread environmental purchasing to many more organisations. Adopting the code would be a statement that an organisation understands the importance of the supply chain to sustainable development, and wishes to make a public commitment to a long-term, continuously improving relationship. Like reading the marriage banns, in fact.

John Brady is past chair of the IEMA and editor of its magazine, the environmentalist.

The Draft Code of Practice stipulates:

• a commitment to environmental supply chain management or environmental purchasing in the organisation's environmental policy and procurement strategy;
• a programme of action containing objectives and targets against which progress can be measured;
• a clear link between these organisation targets and the environmental goals of the organisation as a whole.

It requires evidence that:

• the action programme takes account of the organisation's commercial position vis-a-vis environmentally significant purchases;
• responsibilities for the delivery of this commitment are assigned within those parts of the organisation responsible for the acquisition of goods and services and for environmental management;
• sufficient resources are available within relevant parts of the organisation to fulfil the policy commitment and achieve the related objectives and targets;
• training is provided to enable purchasing staff to discharge their responsibilities within the programme;
• purchasing staff understand how they can contribute to environmental performance improvement;
• environmental and purchasing staff work jointly to implement the programme;
• a mechanism exists for two-way communication with suppliers on the programme's operation;
• progress is monitored and performance measured, with reporting mechanisms to purchasing and environmental managers;
• audit of the supply-chain management process is within the normal environmental management audit cycle.
• Review is done by a group that includes purchasing and supply chain managers.

30 October 2002

John Brady